Daily Chart Art – May 17, 2010

USDCAD: Daily

PoD Chart

Let’s kick things off with the USDCAD pair! The falling trend line connecting the highs of the price on the daily chart seems to be holding up really well but would we see a breakout soon? After sliding down for almost an entire week, the pair made a quick rebound last Friday. This could mean that the pair is ready to test the trend line again, possibly at the 61.8% Fibonacci retracement level, before resuming its down trend. But if the pair breaks above the top of the trend line, buyers could push it all the way up to the resistance around 1.0740.

NZDUSD: Daily

PoD Chart

Here’s an update on the rising channel on the NZDUSD 4-hour chart. After finding resistance at the top of the channel last Monday, the pair edged lower and lower as the week dragged along. It is now approaching the bottom of the channel, at which it could find support. If the pair bounces from the bottom of the channel, it could climb until the top again and encounter resistance around last month’s high of 0.7326. On the other hand, if the pair breaks below the bottom of the channel, it could tumble until resistance turned support around 0.6870.

USDJPY: Daily

PoD Chart

It looks like the USDJPY is finding quite a bit of support right above the 92.00 level. As you can see from the chart I posted, price has been testing this support level for five straight days now. Will we see a bounce or a break today? Ah, well, I’m sure nobody can really tell for certain, so we need to keep an eye out for signs price action shows us to determine where it is headed. If you’re part of the bear camp, look for a convincing candle close below 92.00, as this could be an early signal that the pair would start heading down again. On the other hand, if you’re one of the bulls, look for a close above minor resistance at 93.50.